Microchip Technology Incorporated (NASDAQ:MCHP) Sees Significant Increase in Short Interest

Microchip Technology Incorporated (NASDAQ:MCHP - Get Free Report) saw a significant growth in short interest in the month of February. As of February 28th, there was short interest totalling 33,500,000 shares, a growth of 26.1% from the February 13th total of 26,570,000 shares. Currently, 6.4% of the shares of the stock are short sold. Based on an average daily trading volume, of 9,930,000 shares, the days-to-cover ratio is presently 3.4 days.

Microchip Technology Price Performance

Microchip Technology stock traded up $0.72 during mid-day trading on Friday, hitting $51.72. The company's stock had a trading volume of 29,769,902 shares, compared to its average volume of 6,999,170. Microchip Technology has a twelve month low of $50.02 and a twelve month high of $100.57. The stock's fifty day moving average price is $56.24 and its two-hundred day moving average price is $65.03. The stock has a market capitalization of $27.82 billion, a P/E ratio of 92.36 and a beta of 1.52. The company has a quick ratio of 1.23, a current ratio of 2.25 and a debt-to-equity ratio of 1.12.

Microchip Technology (NASDAQ:MCHP - Get Free Report) last announced its earnings results on Thursday, February 6th. The semiconductor company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.15). Microchip Technology had a net margin of 6.49% and a return on equity of 12.62%. Research analysts forecast that Microchip Technology will post 1.03 earnings per share for the current year.

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Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 7th. Investors of record on Monday, February 24th were given a $0.455 dividend. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.82 annualized dividend and a dividend yield of 3.52%. Microchip Technology's dividend payout ratio (DPR) is presently 325.00%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on MCHP. StockNews.com cut Microchip Technology from a "hold" rating to a "sell" rating in a research report on Monday, February 10th. Needham & Company LLC boosted their price objective on shares of Microchip Technology from $60.00 to $66.00 and gave the stock a "buy" rating in a research note on Tuesday, March 4th. TD Cowen increased their price objective on shares of Microchip Technology from $50.00 to $60.00 and gave the company a "hold" rating in a research report on Tuesday, March 4th. Mizuho lifted their price objective on Microchip Technology from $58.00 to $68.00 and gave the stock an "outperform" rating in a report on Tuesday, March 4th. Finally, Bank of America downgraded Microchip Technology from a "neutral" rating to an "underperform" rating and reduced their target price for the stock from $80.00 to $65.00 in a report on Monday, December 16th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $74.37.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 3,724 shares of the company's stock in a transaction on Tuesday, February 25th. The stock was sold at an average price of $60.88, for a total value of $226,717.12. Following the sale, the chief financial officer now owns 33,272 shares of the company's stock, valued at approximately $2,025,599.36. This represents a 10.07 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microchip Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCHP. Prospera Private Wealth LLC acquired a new position in shares of Microchip Technology in the 3rd quarter valued at about $29,000. Peterson Financial Group Inc. acquired a new position in shares of Microchip Technology in the third quarter worth $34,000. Truvestments Capital LLC purchased a new stake in shares of Microchip Technology during the third quarter worth $34,000. Mainstream Capital Management LLC acquired a new stake in Microchip Technology during the fourth quarter valued at $26,000. Finally, Rakuten Securities Inc. increased its position in Microchip Technology by 309.5% in the 4th quarter. Rakuten Securities Inc. now owns 475 shares of the semiconductor company's stock worth $27,000 after purchasing an additional 359 shares during the last quarter. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Microchip Technology Company Profile

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.